Management accounting a. focuses on estimating future revenues, costs, and other measures to forecast activities and their results b. provides information about the company as a whole. C. reports information that has occurred in the past that is verifiable and reliable. d. provides information that is generally available only on a quarterly or annual basis. 2. The philosophy and a business strategy of manufacturing without waste is referred to as: a lean production b. thin manufacturing c. Total Quality Management d. ISO 9001 _3. Which of the following describes a system in which suppliers deliver materials at the time they are needed? 4 ERP b. Just In Time c. Total Quality Management d. ISO 9001 4. Managerial accounting information a. Pertains to the entity as a whole and is highly aggregated b. Pertains to subunits of the entity and may be very detailed c. is prepared only once a year d. Is constrained by the requirements of generally accepted accounting principles 5. Which one of the following is an example of a period cost? a. A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer b. Workers' compensation insurance on factory workers' wages allocated to the factory c. A box cost associated with computers d. A manager's salary for work that is done in the corporate head office 1 6. How does a manufacturing company report cost of goods manufactured? a. As a current asset on the balance sheet b. As a component of the raw materials inventory on the balance sheet c. As a component in the calculation of cost of goods sold on the income statement d. As an administrative expense on the income statement 7. The property taxes on the factory building for a manufacturer would be an example of Prime Conversion Cost Cost a. Yes b. No No c. Yes No d. No Yes Yes In a job order cost system, the application of manufacturing overhead usually would be recorded as a debit to: a. Finished Goods inventory b. Work in Process inventory G Cost of Goods Sold d. Manufacturing Overhead 9. How would the insurance premium on Research In Motion's manufacturing plants generally be classified? Prime cost Product cost Yes b. No No c. Yes No d. Yes a. No Yes 10. What does manufacturing overhead cost consist of? a. All manufacturing costs b. All manufacturing costs. EXCEPT direct materials and direct labor C. Indirect materials but NOT indirect labor d. Indirect labor but NOT indirect materials. 11. Management functions Sinclude a planning b. directing C controlling d. all of the above 12. Which of the following inventory accounts is not applicable to a manufacturing company? a. Finished Goods Inventory b. Merchandise Inventory c. Raw Materials Inventory. d. Work in Process Inventory 13. A transaction driver is: a. An event that causes a transaction to begin b. A measure of the amount of time required to perform an activity c. An event that causes a transaction to end d. A simple count of the number of times an activity occurs. Use the following information to answer questions 14 and 15: Adams Company has two products: A and B. Annual production and sales are 500 units of Product A and 900 units of Product B. The company has traditionally used direct labor hours as the basis for applying all manufacturing overhead to products Product Arequires 0.4 direct labor hours per unit and Product B requires 0.5 direct labor hours per unit. The total estimated overhead for next period is $67,522. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools - Activity 1. Activity 2. and General Factory - with estimated overhead costs and expected activity as follows: Expected Activity Activity Cost Pool Est MOH Product A Product B Total Activity $6,915 300 200 500 Activity 2 24.948 2.100 700 2800 General Factory 35.659 200 450 650 Total $67.522 (Note: The General Factory activity cost pool's costs are alocated on the basis of direct labor hours.)